TDS norms eased for buying NRI property
The CBDT has amended Income-tax Rules, 2026, allowing buyers to deposit and report TDS under Section 393(2) of the Income-tax Act, 2025 through a PAN-based challan-cum-statement in Form 141. The changes will take effect from October 1, 2026. The move, which follows the Budget 2026 announcement, is aimed at simplifying compliance for property buyers, particularly in transactions that may be…
The Central Board of Direct Taxes (CBDT) has implemented changes to the tax deducted at source (TDS) compliance process for resident individuals and Hindu undivided families (HUFs) purchasing immovable property from non-residents, eliminating the necessity for a distinct Tax Deduction and Collection Account Number (TAN) for these transactions.
The CBDT has amended the Income-tax Rules, 2026, enabling buyers to deposit and report TDS under Section 393(2) of the Income-tax Act, 2025 via a PAN-based challan-cum-statement in Form 141. These modifications will commence from October 1, 2026. This revision, which is a result of the 2026 Budget announcement, seeks to streamline compliance for property purchasers, particularly in cases of one-off transactions.
The CBDT has incorporated a new Schedule E in Form 141 exclusively for immovable property acquisitions from non-resident sellers. Additionally, Form 132 has been revised to synchronize with the updated reporting protocol. The most substantial relief is the elimination of the prerequisite for a resident individual or HUF to acquire a separate TAN for what is typically a singular property purchase, as stated by Neeraj Agarwala, Senior Partner at Nangia & Co LLP.
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